BUSINESS

Rising Rupee to soften gold prices

By Commodity Online
July 09, 2007 11:56 IST

Strengthening of Indian rupee and the continuing weakness in dollar will soften gold prices in the country, leading analysts said.

Bankers predicted that a strong rupee will keep gold under Rs 10,000 per 10 grams in the Indian market.

A poll of 13 banks and brokerages conducted by investment firm ScotiaMocatta showed a median price of Rs 9,210 for gold by the end of December and an average price of Rs 8,950 for 2007.

The poll results said gold prices will be softened by a stronger rupee against the dollar, keeping prices in the Rs 9,000

terrain.

The Indian rupee has appreciated by nearly 9 per cent against the dollar from January, making the import-driven gold metal cheaper for Indians.

Last Friday, August gold on the leading Multi Commodity Exchange was at Rs 8,561, after touching its lowest level this year on Thursday at Rs 8,552.

Commodity Online

NEXT ARTICLE

NewsBusinessMoviesSportsCricketGet AheadDiscussionLabsMyPageVideosCompany Email